wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

What is the difference between a with-profit and without-profit insurance policy?

Open in App
Solution

In the case of with-profit policy, the assured gets not only the sum assured but also a share in the profits that are declared by the insurer. These profits are declared at intervals and credited to the policy holder as bonus. On the other hand, in without-profit policy, the policy holder does not get any right to share in the profit of the insurer. The rate of premium for without-profit policy is lower than the with-profit policy.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Why to Invest in a Company?
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon